Know Your Value – and Charge For It!

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I don’t think people charge enough.

I don’t think that we see value in the way that I see value.

I really think that people do not see the value of the products or services that they offer to the market. If only they knew the value of whatever they are selling, they would achieve success in no time.

However, people become stuck in charging based on two types of value:

• Promised Value and

• Guaranteed Value

Promised Value

This is the value that you promise to a client. It is as if saying that your product could deliver a certain amount of value to your customers.

Guaranteed Value

This type of value states the specific problem that your product can solve. It comes with a guarantee. It is as if saying that your product could impact your life in a specific way.

People prefer guaranteed value more than promised value because they have an assurance of how your product will deliver.

However, there is another type of value that you must look into.

 This is the Use Value of a product.

When selling your products or services, you must focus on its use value.

Here’s a story:

There’s this farmer in a middle of a drought, and you go over there because he’s selling his land for $200,000. You have a painting worth $500,000. In New York, this painting is much more expensive than the plot of land that the farmer selling.

Sounds like a bargain for him, don’t you think?

However, even if you would trade off the painting with a high guaranteed value, your painting would have no use value for the farmer. What would he do with the painting? Even if he would hang the very valuable painting on his wall, it would not be useful for him.

Here’s another story:

If you would go to his place and offer a wind turbine that would generate electricity for $300,000, it would definitely be very useful for the farmer. Although it has a lower guaranteed value compared to the painting, it would be a better deal for the farmer.

This is a good deal because now the farmer could get something with less guaranteed value but with more useful value. The farmer could use this to create electricity. It could help him achieve more in his current situation.

Although the wind turbine costs less than the painting, it would give him what he needs. It would give him the power to change his life. Therefore, it would definitely be a great bargain for him.

There are so many people who are only charging for their guaranteed and promised value and do not look into the use value of their products.

If you have a product or service that has massive use value that will propel people forward, then you must charge the right amount for it.

If yes, you have to charge well for it.

Doing so will change the way you run your business. It will allow you to be successful in a faster pace.
Start propelling yourself forward by changing the lives of others through your products and services.